Mapletree reported to be selling HK office property for HK$8.6b

Singapore

MAPLETREE Investments is said to have sold Mapletree Bay Point, its prime office property in Hong Kong, to private equity firm PAG for HK$8.58 billion (S$1.48 billion).

A report by real estate intelligence firm Mingtiandi said the property was put on market some seven months ago, and that this transaction is expected to close in March or April.

The green building has a gross floor area (GFA) of 61,344 sq m; it has high-efficiency floor plates of about 35,000 sq ft on each floor. Located in Kowloon East, it houses companies such as HSBC and VF Corporation.

Temasek Holdings' Mapletree had completed construction of the property, its first office development in Hong Kong, in 2018.

The total development cost was estimated at HK$6 billion in 2014, when Mapletree secured the site for HK$3.77 billion.

In November, Mapletree divested its office and retail complex, comprising Mapletree Business City Shanghai and VivoCity Shanghai.

South China Morning Post reported that the buyer was Blackstone, and that the complex went for US$1.25 billion.

Mapletree Investments recently purchased the 184-unit Oakwood Arlington, an extended-stay apartment building in northern Virginia, for US$70 million from AvalonBay Communities, it was reported in the media.

Mapletree declined to comment when asked about the Hong Kong and Shanghai disposals.

As at last March 31, Mapletree owned and managed S$46.3 billion of office, retail, logistics, industrial, residential, corporate housing/serviced apartments, and student accommodation properties.